Schwartz Investment Management: A Deep Dive

Schwartz Investment Management, the parent company of Ave Maria Mutual Funds, stands out as a firm deeply rooted in socially responsible investing (SRI). Founded by George P. Schwartz in 2001, the company’s core principle is aligning investment strategies with Catholic values. This means that the firm actively screens companies to avoid investing in those whose activities conflict with Catholic moral teachings. These typically include areas such as abortion, pornography, embryonic stem cell research, and companies significantly involved in the production or sale of products that promote addictive behaviors. This commitment differentiates them from traditional investment houses.

The Ave Maria Mutual Funds, the primary product offered by Schwartz Investment Management, represent a suite of funds catering to different investment objectives and risk tolerances. These include equity funds, bond funds, and balanced funds, all adhering to the firm’s stringent moral criteria. The funds are managed by a team of experienced professionals who combine traditional financial analysis with the overlay of the values-based screening process. This dual approach aims to deliver competitive investment returns while upholding the ethical standards that are central to the firm’s mission.

One significant aspect of Schwartz Investment Management’s approach is its active engagement with the companies it invests in. Rather than simply divesting from companies that may have questionable practices, the firm often engages in shareholder advocacy. This involves writing letters, meeting with management, and filing shareholder resolutions to encourage companies to adopt more ethical and responsible business practices. This proactive approach demonstrates a commitment to influencing corporate behavior and promoting positive change from within the investment landscape.

The performance of Ave Maria Mutual Funds, like any investment, fluctuates with market conditions. While the values-based screening can limit the investment universe, potentially impacting returns in certain sectors, the firm argues that long-term performance is enhanced by investing in companies with strong ethical foundations. These companies, they believe, are often more sustainable and better positioned to navigate complex social and regulatory environments.

Schwartz Investment Management appeals to investors seeking to align their financial goals with their deeply held beliefs. It provides a tangible way for individuals and institutions to invest in accordance with their values, offering a sense of moral consistency often absent in the broader financial world. While not for every investor, particularly those solely focused on maximizing returns without regard to ethical considerations, Schwartz Investment Management offers a compelling alternative for those prioritizing socially responsible investing and the potential for long-term, value-driven growth.

As the SRI landscape continues to evolve, Schwartz Investment Management remains a prominent player, demonstrating that ethical investing can be a viable and meaningful approach to wealth management.